International Finance Important Question Bank 2012

Exam tips for International Finance

Concept Questions:-

1. FIAT Currency
2. LORO account
3. Accommodating and autonomous transactions
4. Indirect quote
5. Types of contracts
6. Purchasing power parity
7. Price specie mechanism
8. Managed float
9. Merchant transactions
10. Petrodollars
11. Hot money
12. Collared bonds
13. IDR
14. FEDAI
15. Translation risk

Long questions

1. What are the factors affecting the BOP situations
2. How can a central bank take corrective actions to solve the imbalance in BOP
3. What factors led to the development of Euro Currency market
4. Explain in details the GDR issue procedure
5. What is SDR and how can it help in correction on BOP
6. Explain the various methods of hedging
7. Role of IMF

Case study:– Case study can be expected on the following topics

1. Convertibility of rupee
2. European debt crisis
3. Depreciation of rupee and the effect of the same on Indian economy

Numerical questions:-

1. Cross rates
2. Direct and indirect quote
3. 2 way and 3 way arbitrage
4. PPP
5. Forward rates- broken dates
6. AFM
7. Interest rate arbitrage
8. Borrowing and lending decisions.

Please note:-

1. The above mentioned questions are a must do for all however they should not be considered as the only questions. Students are requested to go through the entire curriculum and concentrate on the above mentioned questions
2. Concepts questions need to be written in points with not a too detailed elaboration. Relevant real life examples would help you get more marks
3. Students are requested to attempt all the numerical questions which would roughly carry around 25 marks since correct numerical questions would give a student full marks
4. Case study though would be given, however the concept clarity and real life examples only would help the students score good marks.

DO NOT TAKE UNDUE PRESSURES. ALL THE BEST

Content courtesy:- Prof. Vipin Saboo

For more information please contact Vipin Saboo on [email protected] or 9820779873